Nvidia has been one of the biggest beneficiaries of the artificial intelligence (AI) boom, due to its dominance in data center accelerators. The company's shares have surged 750% since ChatGPT launched in November 2022, and it remains a foundational AI stock in many portfolios. But Nvidia has a market capitalization just shy of $3 trillion, so the odds of similar returns in the future are slim.

Accordingly, some investors have shifted focus to Arm Holdings (NASDAQ: ARM) in the hopes of finding the "next Nvidia." Arm stock has more than doubled since the company went public in September 2023, but Lee Simpson at Morgan Stanley believes the momentum could continue. His bull-case price target of $300 per share implies a 130% upside from its current share price of $129.

Here's what investors should know about Arm.

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Source Fool.com